The drink was invented in 1929 by Charles Leiper Grigg. It was first produced by the Howdy Corporation, a company Grigg had formed in 1920. The original name of the drink was "Bib-Label Lithiated Lemon-Lime Soda."

The "bib-label" portion of the name referred to the label of the bottle, because on each bottle the label was tied on like a little bib. The lithiated portion pointed out that the drink contained lithia citrate — better known today as lithium, used as a mood stabilizer in psychiatric treatment. However, at the end of the 19th century, it was pick-me-up patent medicine. Later, in the 1950s, lithium was removed from the formula.

Unfortunately for Grigg, he launched his new drink two weeks before the stock market crash of 1929, which triggered the Great Depression. This, along with a brand name that would not easily roll off one's tongue, prompted him to rename the drink not too long after it had been launched. Grigg renamed the drink 7UP. No one really knows how he came up with that name, but it is presumed that he was merely keeping with his ads of the day: ". . . seven natural flavors blended into a savory, flavory drink with a real wallop." The name change proved to be a success and in 1936 Grigg also changed the name of the company from the Howdy Corporation to Seven UP.